Duff And Phelps Defend Fee Rates
Updated Friday, 1st June 2012
Administrators always get their money first.
Joint administrator Paul Clark said: "The email Mr Daly referred to is a fee quotation our firm supplied to Craig Whyte that was based on information he had supplied to us and was for anticipated work relating to a specific possible administration outcome. This outcome did not materialise and therefore the quotation was therefore redundant. From the first day of administration, it became clear to us that the club was in a major insolvency situation that was going to last for a significant period of time. Since the club entered administration, we have fulfilled our statutory duty to look after the interests of creditors and keep the business going despite the challenging circumstances. As stated on Tuesday in the CVA document, all fees are subject to approval by creditors and are in keeping with the best practice guidelines from insolvency practitioners bodies."
As secured creditors, Duff and Phelps will receive all of their fee before the remaining money available is shared out among those owed money by Rangers. The Sevco consortium in position to buy the club have pledged £8.5million to creditors, the vast majority in the form of a loan, if a CVA is agreed on 14 June. If rejected, Charles Green's group have a deal with Duff and Phelps to buy the club's assets for £5.5million. Duff and Phelps previously threatened legal action against the BBC over claims of a conflict of interest relating to Grier's advisory role in Whyte's takeover, allegations which are being investigated by the Insolvency Practitioners Association.